Arizona GOP wants to limit taxes on groceries. The proposal could be on your ballot soon

Yahoo

27-03-2025

A bill aimed at making essential foods cheaper by limiting a tax on groceries is steps away from clearing the Arizona Legislature and heading to voters for approval.
House Concurrent Resolution 2021 initially faced intense pushback from some smaller municipalities after local leaders said the loss of revenue would impact public safety and the services they can provide. However, changes to the bill appear to have brought some of the most staunch critics onboard.
Touted by legislators as a way to help struggling families, it comes after Democratic Gov. Katie Hobbs vetoed a similar food tax bill in 2023. She opposed the bill, saying as local leaders initially did this year, that it had the potential to cut services and increase property taxes.
This time around, GOP lawmakers will avoid Hobbs' veto pen by sending the measure to the November 2026 ballot for final approval.
'I don't believe that we should be taxing essential foods like eggs, milk and meat when these are the things that every family needs to survive,' said Rep. Leo Biasiucci, R-Lake Havasu.
The bill originally sought to exempt food intended for home consumption from being taxed. After amendments from Rep. David Livingston, R-Peoria, and Biasiucci, the bill now seeks to put limits on future food taxes.
Towns that have a food tax rate at 2% or more can keep the tax but are prohibited from increasing it. Communities whose food tax comes in at lower than the 2% rate and those that do not currently have a food tax could seek voter permission to increase that levy, but that tax rate must not go above 2% of the tax base. Under the proposal, any adoption or increase in the tax must not occur before June 30, 2027.
Biasiucci said his bill addresses the issue of fairness, noting that people on food stamps do not pay taxes on these types of food items, and those who do not qualify for food stamps shouldn't pay the tax either.
'Are we now saying that just because you don't qualify for food stamps even though you might be struggling, you have to pay a tax on these items but people on food stamps do not?' he said. 'For me this is about having fairness across the whole spectrum … if these are determined to be essential foods for a reason — which they are — everybody should be treated equally.'
Mayors from rural municipalities who were originally against the bill say they approve of the amendments.
According to public data provided by the Department of Revenue, 70 of Arizona's 91 incorporated cities and towns taxed food for home consumption in Fiscal Year 2024.
Mayors of Bisbee and Benson opposed the original bill, but say they support the amendments of the current bill advancing through the Senate.
Benson Mayor Joe Konrad applauded legislators for listening to local leaders.
"This now gives us the opportunity to seek out alternative revenue streams and attack the food tax in a responsible manner that does not jeopardize our budget," Konrad said. He added that the city's overarching goal is to reduce the food tax rate and eventually eliminate it.
The city of Globe, a mining community southeast of Phoenix, said it would have lost $1.4 million if the food tax went away. Globe Mayor Al Gameros said that while he supports the bill as it is written, he was concerned about the state Legislature weighing in on municipal issues.
"It is discouraging that every year we are dealing with an overreach of control from our state Legislatures on how we run and tax our individual cities," Gameros said. "Yes, it looks good at the state level that taxes are cut, but it puts the burden on our local taxpayers to make up the difference."
This year, Biasiucci also sponsored a bill on nutrition assistance benefits and soda. House Bill 2165 seeks to prohibit the use of the Supplemental Nutrition Assistance Program to purchase soda.
The bill passed the House Feb. 26 and is advancing through the Senate.
GOP legislators tout the bill as an effort to ensure taxpayer dollars support nutritious food choices.
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This article originally appeared on Arizona Republic: Arizona Republicans want voters to limit taxes on groceries